A court in Seoul, South Korea, has issued an arrest warrant for Kwon and five others who are currently in Singapore.
While the LUNC community is excited about the potential return of the Terraform LUNA Classic (LUNC) token, Terraform Labs founder Do Kwon is now facing an arrest warrant from South Korean authorities.
A Seoul court has reportedly issued an arrest warrant for Kwon and five others who are currently in Singapore. The founder of Terra is accused of violating the country’s capital markets law, according to the South Korean prosecutor’s office.
In May, what the Terra community initially suspected of being a FUD attack turned into one of the most devastating market crashes in the history of cryptocurrencies, resulting in the loss of millions of investors’ assets from TerraUSD (UST), now renamed TerraUSD Classic (USTC). and launched LUNA, which will also be renamed LUNA Classic (LUNC). The UST stablecoin has begun to move away from its peg to the US dollar, falling to an all-time low of $0.006 in June.
Aside from UST, LUNA, an asset that peaked at $119.18 in April, plummeted to an all-time low of $0.0000009, leading to suicide hotlines anchored in the Reddit project community.
The collapse of Terra also affected various decentralized finance (DeFi) protocols, causing stablecoin projects to drop by more than 80%.
Related: Exchanges under fire for ‘nothingburger PR’ reports about upcoming LUNC tax burn
On August 17, Kwon hired lawyers from a South Korean law firm just days after he said authorities had yet to contact him. According to the report, the Terra founder submitted an appointment letter to the department in charge of investigating the Terra collapse.
The Terra founder also broke his silence on August 16 to clear his name of various allegations. However, despite Kwon’s efforts, members of the community continued to criticize Terra’s CEO, comparing his situation to the creator of Tornado Cash, who was arrested for writing privacy code.